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Equity Speciality Funds

Dr. Ray wants to know why DSPML World Gold fund is classified as an equity speciality fund

Is the DSPML World Gold Fund an Equity Fund or a Debt fund? On your site it is classified as an Equity specialty fund, but I am told that for tax calculations it is considered as a debt fund. Could you kindly clarify the same for me that what are the tax implications for this fund?
-Dr. Deepak S Ray

Yes, the tax treatment for this fund is same as debt fund because more than 65 percent of the fund corpus is invested in stocks of foreign companies. Long-term capital gain tax is zero only in the case of equity funds. Equity funds are defined as those which invest more than 65 per cent of their assets in Indian companies. Any fund not fulfilling this criterion will be subjected to the rules of debt fund.

DSPML World Gold fund is an equity based fund of funds mutual fund scheme. A large portion of this fund is invested in overseas mutual fund schemes, which in turn invest in stocks related to gold mining companies.



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